Pursuits
Macy's, Kohl's Fall After Citigroup Warns of `Tough Quarter'
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Shares of Macy’s Inc. and Kohl’s Corp. declined after Citigroup Inc. cut its earnings estimates for the companies, saying the industry is suffering from a sales slowdown and inventory glut.
Citigroup analyst Paul Lejuez also reduced target prices for the two stocks after checking on sales channels and assessing commentary from vendors, including Michael Kors Holdings Ltd. and Ralph Lauren Corp. He now expects Macy’s to post earnings of 47 cents a share for the third quarter, down from an earlier estimate of 52 cents. The analyst trimmed his Kohl’s estimate to 58 cents a share from 69 cents.